HomeMy WebLinkAboutReso 1990-15890 RESOLUTION NO. 15890
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA
APPROVING, AUTHORIZING AND DIRECTING EXECUTION OF CERTAIN LEASE
FINANCING DOCUMENTS, APPROVING THE FORM AND AUTHORIZING
DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT IN CONNECTION
WITH THE OFFERING AND SALE OF CERTIFICATIONS OF PARTICIPATION
RELATING THERETO, AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS
WITH RESPECT THERETO
The City Council of the City of Chula Vista does hereby resolve as
follows:
WHEREAS, the City, working together with California Cities Financing
Corporation (the "Corporation"), is proposing to proceed with a lease
financing; and
WHEREAS, in connection therewith, the City proposes to finance the
acquisition of certain equipment (the "Equipment), as more particularly
described in the hereinafter defined Lease Agreement and it is in the public
interest and for the public benefit that the City authorize and direct
execution of the hereinafter defined Lease Agreement and certain other
financing documents in connection therewith; and
WHEREAS, Stone & Youngberg (the "Underwriter"} has been directed to
prepare a preliminary official statement containing information material to
the offering and sale of the Certificates of Participation described below; and
WHEREAS, the documents below specified have been filed with the City and
the members of the City Council, with the aid of its staff, have reviewed said
documents.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula
Vista as follows:
Section 1. The below-enumerated documents be and are hereby approved,
and the Mayor, the City Manager or Director of Finance is hereby authorized
and directed to execute said documents, with such changes, insertions and
omissions as may be approved by such official, and the City Clerk is hereby
authorized and directed to attest to such official's signature:
{a) a lease agreement, relating to the Equipment, between the
Corporation, as lessor, and the City, as lessee (the "Lease Agreement}, so
long as the stated term of the Lease Agreement does not exceed seven (7)
years, so long as the aggregate principal amount of the Lease Agreement does
Resol uti on No. 15890
Page 2 _
not exceed $1,335,000 and so long as the maximum lease payments paid by the
City under the Lease Agreement in any one year period commencing on October 2
and ending on the succeeding October 1 does not exceed $350,000; and
{b) an agency agreement, by and between the Corporation and the City,
pursuant to which the Corporation will appoint the City to act as its agent
for the purposes of the acquisition of the Equipment; and
(c) a trust agreement by and among the Corporation, the City and Bank of
America National Trust and Savings Association, San Francisco, California, as
trustee, the selection of which trustee is hereby approved (the "Trust
Agreement), relating to the financing, and the execution and delivery of
certificates of participation evidencing the direct, undivided fractional
interests of the owners thereof, in lease payments to be made by the City
under the Lease Agreement (the "Certificates of Participation").
Section 2. The City Council hereby approves the Preliminary Official
Statement describing the financing, in substantially the form on file with the
City Clerk, together with any changes therein or additions thereto deemed
advisable by the Mayor, the City Manager or the Director of Finance. The City
Council authorizes and directs the City Manager, on behalf of the City, to
deem "final" pursuant to Rule 15c2-12 under the Securities Exchange Act of
1934 (the "Rule") the Preliminary Official Statement prior to its distribution
by the Underwriter.
Section 3. The Underwriter, on behalf of the City, is authorized and
directed to cause the Preliminary Official Statement be distributed to such
municipal bond broker-dealers, to such banking institutions and to such other
persons as may be interested in purchasing the Certificates of Participation
therein offered for sale.
Section 4. A contract of purchase, by and between the Underwriter and
the City, pursuant to which the Underwriter agrees to purchase the
Certificates, be and the same is hereby approved, and the Mayor, The City
Manager or the Director of Finance is hereby authorized and directed to
execute said documents, with such changes, insertions and omissions as may be
approved by such official, so long as the aggregate principal amount of
Certificates does not exceed $1,335,000 so long as the maximum amount of
principal and interest paid with respect to the Certificates in any one year
period commencing on October 2 and ending on the succeeding October 1 does not
exceed $350,000, and so long as the Underwriter's discount does not exceed
1.65%.
Section 5. The mayor, the City Manager or the Director of Finance is
authorized and directed to cause the Preliminary Official Statement to be
brought into the form of a final official statement (the "final Official
Statement") and to execute said Final Official Statement, dated as of the date
of the sale of the Certificates of Participation, and a statement that the
facts contained in the Final Official Statement, and any supplement or
amendment thereto (which shall be deemed an original part thereof for the
Resolution No. 15890
Page 3
purpose of such statement) were, at the time of sale of the Certificates of
Participation, true and correct in all material respects and that the Final
Official Statement did not, on the date of sale of the Certificates of
Participation, and does not, as of the date of delivery of the Certificates of
Participation, contain any untrue statement of a material fact with respect to
the City or omit to state material facts with respect to the City required to
be stated where necessary to make any statement made therein not misleading in
the light of the circumstances under which it was made. The Mayor, the City
Manager or the Director of Finance shall take such further actions prior to
the signing of the Final Official Statement as are deemed necessary or
appropriate to verify the accuracy thereof. The execution of the final
Official Statement, which shall include such changes and additions thereto
deemed advisable by the Mayor,, the City Manager or the Director of Finance
and such information permitted to be excluded from the PReliminary Official
Statement pursuant to the Rule, shall be conclusive evidence of the approval
of the Final Official Statement by City.
Section 6. The Final Official Statement, when prepared, is approved for
distribution in connection with the offering and sale of the Certificates of
Participation.
Section 7. The Mayor, the City Manager, the Director of Finance, the
City Clerk and all other appropriate officials of the City are hereby
authorized and directed to execute such other agreements, documents and
certificates as may be necessary to effect the purposes of this resolution and
the financing herein authorized.
Section 8. This Resolution shall take effect upon its adoption by this
City Council.
Presented by Ap d a~to~~ br~~
,t~/~ ~ ~~M.dBoogaar
Lyma~Christopher ~
Director of Finance City Attorney
Resolution No. 15890
Page 4 -
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula
Vista, California, this 9th day of October, 1990 by the following vote:
AYES: Councilmembers: McCandliss, Moore, Nader, Cox
NOES: Councilmembers: None
ABSENT: Councilmembers: Malcolm
ABSTAIN: Councilmembers: None
G Cox, Mayor
ATTEST:
~Au~helet, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
CITY OF CNULA VISTA )
I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do
hereby certify that the foregoing Resolution No. 15890 was duly passed,
approved, and adopted by the City Council of the City of Chula Vista,
California, at a regular meeting of said City Council held on the 9th day of
October, 1990.
Executed this 9th day of October, 1990.
~~u'~he~et, City Cl~rk